Homeowners Insurance in Decatur, Alabama (2025)

Located along the banks of the Tennessee River and Wheeler Lake, just downstream from Florence and the Tennessee border, Decatur, Alabama is full of the great outdoors. The town’s more than 55,000 residents get to enjoy life on the water, exploring through Wheeler National Wildlife Refuge Visitor Center and even Huntsville, which lays across the “Steamboat Bill” Memorial Bridge.

For homeowners, life gets even better. Homeowners insurance in Decatur, Alabama is more affordable than in many other places across the country. We break it down below.

The average cost of homeowners insurance in Decatur is about $1,768 annually, which is 14% below Alabama’s statewide average premium of $2,058 per year. 

While home insurance rates in the Southeast are generally on the rise, in large part due to hurricane susceptibility and damage, Decatur hasn’t seen as dramatic of premium increases due to its northern and inland location in Alabama. It’s spared from the brunt of hurricane damage.

Natural disaster susceptibility is just one of many factors influencing rates. The cost of your home is the biggest determining factor in premiums, with more expensive homes requiring more insurance. Homes that cost more to build cost more to cover and insure.

Another major factor in insurance costs is the company you choose. That’s also why we partner with several insurers. It allows us to decipher their costs and only choose the partners who can provide affordable policies that meet the needs of homeowners. Things like your coverage amounts, deductibles and many other factors are also at play.

As an agency, we have many insurance partners in Alabama ready to provide you with a policy today. All you need to do is enter a few details about your home into our proprietary online quoting engine, then we’ll work some magic and pair you with an affordable policy that meets your coverage needs.

With a standard homeowners insurance policy, you’ll get coverages A through F. Those coverages protect against a certain subset of perils, which are simply matters of damage and disaster that can occur. Let’s take an in-depth look at these coverages and a few example scenarios that should be covered.

Dwelling: This is the structure of your home, including things that are built into it or attached to it and deemed necessary. Dwelling coverage extends to things like your home’s roof, the windows, doors, flooring, hot water heater and also the major systems in your home, like the air conditioning unit, HVAC system and electrical wiring.

Other Structures: This is geared to protect any structures on your property that aren’t attached to your home, such as sheds, carports, detached garages and fencing. The amount of coverage you receive is typically 10% of your home’s dwelling coverage, which is the amount your house is actually insured for. So homeowners with a $250,000 house may have up to $25,000 in coverage for the structures on their property if they need to file a claim for damage.

Personal Property: This will help protect your furniture, clothing, electronics and much more if your home is damaged or destroyed by a covered peril. It also covers high-value items like jewelry and collectibles, but in a much different fashion with lower maximums — unless you schedule them with your insurer.

To determine how much coverage you need, start a home inventory list of all your belongings and their values, noting which items you need to schedule and for how much.

Loss of Use: This protects your finances if your home is damaged or destroyed and you’re forced to temporarily move out while it’s being repaired or rebuilt. It’s geared to reimburse you for additional living expenses you incur in that scenario. Things like a rental home of equivalent value, storage fees and pet boarding are some of the most common things covered.

Liability: This is designed to help cover medical bills and legal fees if someone is injured on your property and you’re found liable, damage you cause to another home, or if your dog bites someone on or off the property.

Things like a tree falling from your yard onto your neighbor’s roof can be covered. As can incidents like your dog biting someone off your property. Coverage typically comes standard at $250,000 per claim, but high-net-worth individuals are encouraged to purchase supplementary umbrella coverage to extend their maximums.

Medical Payments: Similar to the aforementioned liability portion, medical payments to others coverage can help pay for minor medical expenses if someone is injured on your property — whether or not you’re found liable.

Homeowners insurance doesn’t cover flooding, so you’ll need a separate flood insurance policy for that. Fortunately, getting an Alabama flood insurance policy is extremely easy. All you need to do is fill out our online quoting form and one of our licensed flood insurance agents will get back to you with a policy that fits your needs and your budget.

Since Decatur sits along the banks of the Tennessee River, much of the city is within one of FEMA’s designated flood zones. But it’s mainly properties along the Dry Branch and Betty Rye Branch that are most susceptible to flooding, as some of these are high-risk flood zones.

Getting a homeowners insurance quote is easy as ever with Clovered. Our online quoting platform is simple to use, extremely intuitive and can compare the premiums of some of Alabama’s top insurers, so you get the best policy at the best price.

We’re always here to help. If you’d rather speak to a licensed agent on the phone, just call 833-255-4117 Monday through Friday from 8:30 a.m. to 6 p.m. Or you can email us anytime at agent@clovered.com.